Understanding Business

✍ Scribed by Susan McHugh; James McHugh; William Nickels

• Publisher: McGraw-Hill Education
• Year: 2015
• Tongue: English
• Leaves: 840
• Edition: 11
• Category: Library

✦ Synopsis

Understanding Business has long been the market leader because we listen to instructors and students. With this eleventh edition we are proud to offer a platinum experience, that: Improves Student Performance—Understanding Business puts students at the center. It’s the only learning program on the market to offer proven adaptive technology that increases grades by a full letter through Connect® Business, and the only program to offer the first and only adaptive eBook ever, SmartBook. Enhances your Teaching—The authors are dedicated to supporting your teaching and your student’s learning, which is why they listen to YOU and develop resources based on YOUR suggestions and course needs. This is the only author-team on the market that carefully review each and every resource to ensure cohesion. Accessible to All—This learning program has moved toward tighter compliance with the Web Content Accessibility Guidelines, and provides students the opportunity to learn regardless of learning style or disability. What’s more, it earner a perfect score of 100 points possible by Quality Matters, an independent organization that reviews and certifies the quality of online courses and online components. Choose a platinum experience. Choose Understanding Business.

✦ Table of Contents

Cover
Understanding Business
dedication
ABOUT THE AUTHORS
ACKNOWLEDGMENTS
BRIEF CONTENTS
CONTENTS
Getting Readyfor This Courseand Your Career
Top 10 Reasons to Read This Introduction
Learning the Skills You Need to Succeed Today and Tomorrow
Using This Course to Prepare for Your Career
Assessing Your Skills and Personality
Using Professional Business Strategies Right Now
Learning to Behave Like a Professional
Doing Your Best in College
Study Hints
Test-Taking Hints
Time Management Hints
Making the Most of the Resources for This Course
Getting the Most from This Text
PART 1 Business Trends: Cultivating a Business in Diverse, Global Environments
Chapter 1 Taking Risks and Making Profits within the Dynamic Business Environment
Getting to Know: Sammy Hagar, Entrepreneur and Rock Star
Entrepreneurship and Wealth Building
Revenues, Profits, and Losses
Matching Risk with Profit
Standard of Living and Quality of Life
Responding to the Various Business Stakeholders
Using Business Principles in Nonprofit Organizations
Entrepreneurship versus Working for Others
Opportunities for Entrepreneurs
Spotlight on Small Business: How a Food Truck Helped Rebuild a Storm-Struck Community
The Importance of Entrepreneurs to the Creation of Wealth
The Business Environment
The Economic and Legal Environment
Making Ethical Decisions: Ethics Begins with You
The Technological Environment
Reaching Beyond Our Borders: Connecting Companies with Global Freelancers
The Competitive Environment
The Social Environment
The Global Environment
Adapting to Change: Gourmet Airport Eateries Take Flight
The Evolution of U.S. Business
Progress in the Agricultural and Manufacturing Industries
Progress in Service Industries
Your Future in Business
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Thomas Lennon
Notes
Photo Credits
Chapter 2 Understanding Economics and How It Affects Business
Getting to Know: Matt Flannery, Co-Founder and CEO of Kiva.org
How Economic Conditions Affect Businesses
What Is Economics?
The Secret to Creating a Wealthy Economy
Adam Smith and the Creation of Wealth
How Businesses Benefit the Community
Making Ethical Decisions: How Corruption Harms the Economy
Understanding Free-Market Capitalism
The Foundations of Capitalism
How Free Markets Work
How Prices Are Determined
The Economic Concept of Supply
The Economic Concept of Demand
The Equilibrium Point, or Market Price
Competition within Free Markets
Spotlight on Small Business: Bugs Bug Orange Farmers and Drive Prices Up
Benefits and Limitations of Free Markets
Understanding Socialism
The Benefits of Socialism
The Negative Consequences of Socialism
Understanding Communism
The Trend Toward Mixed Economies
Reaching Beyond Our Borders: Economic Expansion in Africa
Understanding the U.S. Economic System
Key Economic Indicators
Productivity in the United States
Productivity in the Service Sector
The Business Cycle
Stabilizing the Economy through Fiscal Policy
Fiscal Policy in Action during an Economic Crisis
Using Monetary Policy to Keep the Economy Growing
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Opportunities International
Notes
Photo Credits
Chapter 3 Doing Business in Global Markets
Getting to Know: Leila Janah, Founder and CEO of Samasource
The Dynamic Global Market
Why Trade with Other Nations?
The Theories of Comparative and Absolute Advantage
Getting Involved in Global Trade
Importing Goods and Services
Exporting Goods and Services
Measuring Global Trade
Strategies for Reaching Global Markets
Licensing
Exporting
Franchising
Contract Manufacturing
Reaching Beyond Our Borders: McDonald’s: Over 100 Cultures Served
International Joint Ventures and Strategic Alliances
Foreign Direct Investment
Forces Affecting Trading in Global Markets
Sociocultural Forces
Spotlight on Small Business: From Setting Picks to Picking Grapes
Economic and Financial Forces
Legal and Regulatory Forces
Physical and Environmental Forces
Trade Protectionism
The World Trade Organization
Common Markets
The North American and Central American Free Trade Agreements
The Future of Global Trade
The Challenge of Offshore Outsourcing
Globalization and Your Future
Making Ethical Decisions: Making Your Operation Your Vacation
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Electra Bicycle Company
Notes
Photo Credits
Chapter 4 Demanding Ethical and Socially Responsible Behavior
Getting to Know: Patty Stonesifer, CEO of Martha’s Table
Ethics Is More Than Legality
Making Ethical Decisions: Bernie Madoff’s Ponzi Scheme
Ethical Standards Are Fundamental
Ethics Begins with Each of Us
Spotlight on Small Business: Turning Ex-Convicts into Entrepreneurs
Managing Businesses Ethically and Responsibly
Setting Corporate Ethical Standards
Corporate Social Responsibility
Responsibility to Customers
Responsibility to Investors
Responsibility to Employees
Responsibility to Society and the Environment
Social Auditing
Seeking Sustainability: Sustainability’s in the Bag
International Ethics and Social Responsibility
Reaching Beyond Our Borders: Going by a Different Standard
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Warby Parker/VisionSpring
Notes
Photo Credits
PART 2 Business Ownership: Starting a Small Business
Chapter 5 How to Form a Business
Getting to Know: Anne Beiler, Founder of Auntie Anne’s
Basic Forms of Business Ownership
Sole Proprietorships
Advantages of Sole Proprietorships
Disadvantages of Sole Proprietorships
Partnerships
Advantages of Partnerships
Disadvantages of Partnerships
Making Ethical Decisions: Good Business, Bad Karma?
Corporations
Advantages of Corporations
Disadvantages of Corporations
Seeking Sustainability: B Corporations Let Sustainability Set Sail
Individuals Can Incorporate
S Corporations
Limited Liability Companies
Corporate Expansion: Mergers and Acquisitions
Franchises
Advantages of Franchises
Spotlight on Small Business: The Building Blocks of Franchising
Disadvantages of Franchises
Diversity in Franchising
Home-Based Franchises
E-Commerce in Franchising
Using Technology in Franchising
Adapting to Change: Giving Entrepreneurs Options with Digital Franchising
Franchising in Global Markets
Cooperatives
Which Form of Ownership Is for You?
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Sonic
Notes
Photo Credits
Chapter 6 Entrepreneurship and Starting a Small Business
Getting to Know: Prudencio Unanue, Founder of Goya Foods
The Age of the Entrepreneur
The Job-Creating Power of Entrepreneurs in the United States
Spotlight on Small Business: Earning while Learning
Why People Take the Entrepreneurial Challenge
What Does It Take to Be an Entrepreneur?
Turning Your Passions and Problems into Opportunities
Entrepreneurial Teams
Micropreneurs and Home-Based Businesses
Web-Based Businesses
Entrepreneurship within Firms
Encouraging Entrepreneurship: What Government Can Do
Getting Started in Small Business
Small versus Big Business
Importance of Small Businesses
Small-Business Success and Failure
Learning about Small-Business Operations
Learn from Others
Get Some Experience
Making Ethical Decisions: Should You Stay or Should You Go?
Take Over a Successful Firm
Managing a Small Business
Begin with Planning
Getting Money to Fund a Small Business
Adapting to Change: States Test New Crowdinvesting Rules
The Small Business Administration (SBA)
Knowing Your Customers
Managing Employees
Keeping Records
Reaching Beyond Our Borders: Beyond Knowing What Your Customers Need
Looking for Help
Going Global: Small-Business Prospects
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Launching a Business: Pillow Pets
Notes
Photo Credits
PART 3 Business Management: Empowering Employees to Satisfy Customers
Chapter 7 Management and Leadership
Getting to Know: Sheryl Sandberg, COO of Facebook
Managers’ Roles Are Evolving
The Four Functions of Management
Planning and Decision Making
Decision Making: Finding the Best Alternative
Organizing: Creating a Unified System
Tasks and Skills at Different Levels of Management
Reaching Beyond Our Borders: Back to School for Top Managers
Staffing: Getting and Keeping the Right People
Leading: Providing Continuous Vision and Values
Making Ethical Decisions: What Do You Tell the Team?
Leadership Styles
Empowering Workers
Managing Knowledge
Adapting to Change: Using Social Media during the Worst of Times
Controlling: Making Sure It Works
A Key Criterion for Measurement: Customer Satisfaction
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Zappos’s Team Approach
Notes
Photo Credits
Chapter 8 Structuring Organizations for Today’s Challenges
Getting to Know: Jenna Lyons, President and Creative Director of J. Crew
Everyone’s Reorganizing
Building an Organization from the Bottom Up
Making Ethical Decisions: Would You Sacrifice Safety for Profits?
The Changing Organization
The Development of Organization Design
Turning Principles into Organization Design
Decisions to Make in Structuring Organizations
Choosing Centralized or Decentralized Authority
Choosing the Appropriate Span of Control
Choosing between Tall and Flat Organization Structures
Weighing the Advantages and Disadvantages of Departmentalization
Organizational Models
Line Organizations
Line-and-Staff Organizations
Matrix-Style Organizations
Cross-Functional Self-Managed Teams
Going Beyond Organizational Boundaries
Managing the Interactions among Firms
Transparency and Virtual Organizations
Spotlight on Small Business: Cutting Back while Cutting Costs
Benchmarking and Core Competencies
Adapting to Change
Adapting to Change: When Open Communication Should Not Be So Open
Restructuring for Empowerment
Creating a Change-Oriented Organizational Culture
Managing the Informal Organization
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Whole Foods
Notes
Photo Credits
Chapter 9 Production and Operations Management
Getting to Know: Shahid Khan, CEO of Flex-N-Gate
Manufacturing and Services in Perspective
Seeking Sustainability: Your Own Farm in a Box
Reaching Beyond Our Borders: Nobody Does It Better
Manufacturers and Service Organizations Become More Competitive
From Production to Operations Management
Operations Management in the Service Sector
Production Processes
The Need to Improve Production Techniques and Cut Costs
Computer-Aided Design and Manufacturing
Flexible Manufacturing
Lean Manufacturing
Mass Customization
Robotics
Spotlight on Small Business: Make Your Own Kind of Music
Using Sensing, Measurement, and Process Control
Operations Management Planning
Facility Location
Facility Location for Manufacturers
Making Ethical Decisions: Do We Stay or Do We Go?
Taking Operations Management to the Internet
Facility Location in the Future
Facility Layout
Materials Requirement Planning
Purchasing
Just-in-Time Inventory Control
Quality Control
The Baldrige Awards
ISO 9000 and ISO 14000 Standards
Control Procedures: Pert and Gantt Charts
Preparing for the Future
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Keeping Your Eye on the Ball
Notes
Photo Credits
PART 4 Management of Human Resources: Motivating Employees to Produce Quality Goods and Services
Chapter 10 Motivating Employees
Getting to Know: David Novak, CEO of Yum! Brands
The Value of Motivation
Frederick Taylor: The Father of Scientific Management
Elton Mayo and the Hawthorne Studies
Motivation and Maslow’s Hierarchy of Needs
Herzberg’s Motivating Factors
McGregor’s Theory X and Theory Y
Theory X
Theory Y
Ouchi’s Theory Z
Goal-Setting Theory and Management by Objectives
Meeting Employee Expectations: Expectancy Theory
Reinforcing Employee Performance: Reinforcement Theory
Treating Employees Fairly: Equity Theory
Putting Theory into Action
Motivation through Job Enrichment
Motivating through Open Communication
Applying Open Communication in Self-Managed Teams
Adapting to Change: When Is Social Media Too Social?
Recognizing a Job Well Done
Personalizing Motivation
Spotlight on Small Business: Going Up against the Heavyweights
Motivating Employees across the Globe
Reaching Beyond Our Borders: Beyond Just Knowing Cross-Cultural Differences
Motivating Employees across Generations
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Appletree Answers
Notes
Photo Credits
Chapter 11 Human Resource Management: Finding and Keeping the Best Employees
Getting to Know: Tony Hsieh, CEO of Zappos
Working with People Is Just the Beginning
Developing the Ultimate Resource
The Human Resource Challenge
Laws Affecting Human Resource Management
Laws Protecting Employees with Disabilities and Older Employees
Effects of Legislation
Determining a Firm’s Human Resource Needs
Recruiting Employees from a Diverse Population
Spotlight on Small Business: Competing for the Cream of the Crop
Selecting Employees Who Will Be Productive
Adapting to Change: Keeping the Right Face on Facebook
Hiring Contingent Workers
Training and Developing Employees for Optimum Performance
Making Ethical Decisions: Intern or Indentured Servant?
Management Development
Networking
Diversity in Management Development
Appraising Employee Performance to Get Optimum Results
Compensating Employees: Attracting and Keeping the Best
Pay Systems
Compensating Teams
Fringe Benefits
Reaching Beyond Our Borders: Cultural Challenges without Conflict
Scheduling Employees to Meet Organizational and Employee Needs
Flextime Plans
Home-Based Work
Job-Sharing Plans
Moving Employees Up, Over, and Out
Promoting and Reassigning Employees
Terminating Employees
Retiring Employees
Losing Valued Employees
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Teach for America
Notes
Photo Credits
Chapter 12 Dealing with Union and Employee—Management Issues
Getting to Know: DeMaurice Smith, Executive Director of the NFL Players Association
Employee–Management Issues
Labor Unions Yesterday and Today
The History of Organized Labor
Public Sector Union Membership
Spotlight on Small Business: The Factory Blaze That Fired Up a Movement
Labor Legislation and Collective Bargaining
Union Organizing Campaigns
Objectives of Organized Labor over Time
Resolving Labor–Management Disagreements
Mediation and Arbitration
Tactics Used in Labor–Management Conflicts
Union Tactics
Management Tactics
Making Ethical Decisions: To Cross or Not to Cross
The Future of Unions and Labor–Management Relations
Controversial Employee–Management Issues
Executive Compensation
Adapting to Change: College Athletes: What Are They Worth?
Pay Equity
Sexual Harassment
Child Care
Elder Care
Drug Testing
Violence in the Workplace
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: United We Stand
Notes
Photo Credits
PART 5 Marketing: Developing and Implementing Customer-Oriented Marketing Plans
Chapter 13 Marketing: Helping Buyers Buy
Getting to Know: Daymond John, Founder of FUBU
What Is Marketing?
The Evolution of Marketing
Seeking Sustainability: Making Sustainability Just Peachy
Nonprofit Organizations and Marketing
The Marketing Mix
Applying the Marketing Process
Designing a Product to Meet Consumer Needs
Setting an Appropriate Price
Getting the Product to the Right Place
Developing an Effective Promotional Strategy
Providing Marketers with Information
The Marketing Research Process
The Marketing Environment
Global Factors
Technological Factors
Sociocultural Factors
Reaching Beyond Our Borders: Two Is Better than One
Competitive Factors
Economic Factors
Two Different Markets: Consumer and Business-to-Business (B2)
The Consumer Market
Segmenting the Consumer Market
Reaching Smaller Market Segments
Building Marketing Relationships
The Consumer Decision-Making Process
Adapting to Change: Turning Negatives to Positive
The Business-to-Business Market
Your Prospects in Marketing
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Using the 4 Ps at Energizer
Notes
Photo Credits
Chapter 14 Developing and Pricing Goods and Services
Getting to Know: Kathy Ireland, CEO of Kathy Ireland Worldwide
Product Development and the Total Product Offer
Adapting to Change: Bellying Up to Social Media
Distributed Product Development
Product Lines and the Product Mix
Spotlight on Small Business: Sealing the Deal
Product Differentiation
Marketing Different Classes of Consumer Goods and Services
Marketing Industrial Goods and Services
Packaging Changes the Product
The Growing Importance of Packaging
Branding and Brand Equity
Brand Categories
Reaching Beyond Our Borders: Playing the Name Game
Generating Brand Equity and Loyalty
Creating Brand Associations
Brand Management
The New-Product Development Process
Generating New-Product Ideas
Product Screening
Product Analysis
Product Development and Testing
Commercialization
Adapting to Change: Making the Right Cut
The Product Life Cycle
Example of the Product Life Cycle
Using the Product Life Cycle
Competitive Pricing
Pricing Objectives
Cost-Based Pricing
Demand-Based Pricing
Competition-Based Pricing
Break-Even Analysis
Other Pricing Strategies
How Market Forces Affect Pricing
Nonprice Competition
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Dream Dinners Food-to-Go
Notes
Photo Credits
Chapter 15 Distributing Products
Getting to Know: Reed Hastings, CEO of Netflix
The Emergence of Marketing Intermediaries
Seeking Sustainability: Answer May Be Blowing in the Wind
Why Marketing Needs Intermediaries
How Intermediaries Create Exchange Efficiency
The Value versus the Cost of Intermediaries
The Utilities Created by Intermediaries
Form Utility
Time Utility
Place Utility
Possession Utility
Information Utility
Service Utility
Wholesale Intermediaries
Merchant Wholesalers
Agents and Brokers
Retail Intermediaries
Retail Distribution Strategy
Adapting to Change: Truckin’ On with Social Media
Nonstore Retailing
Electronic Retailing
Telemarketing
Vending Machines, Kiosks, and Carts
Direct Selling
Multilevel Marketing
Direct Marketing
Building Cooperation in Channel Systems
Corporate Distribution Systems
Contractual Distribution Systems
Administered Distribution Systems
Supply Chains
Reaching Beyond Our Borders: Weak Links Can Break a Chain
Logistics: Getting Goods to Consumers Efficiently
Trains Are Great for Large Shipments
Trucks Are Good for Small Shipments to Remote Locations
Water Transportation Is Inexpensive but Slow
Pipelines Are Fast and Efficient
Air Transportation Is Fast but Expensive
Intermodal Shipping
The Storage Function
Tracking Goods
What All This Means to You
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: FedEx
Notes
Photo Credits
Chapter 16 Using Effective Promotions
Getting to Know: Chris Hardwick, Co-Founder of Nerdist Industries
Promotion and the Promotion Mix
Advertising: Informing, Persuading, and Reminding
Television Advertising
Product Placement
Infomercials
Online Advertising
Making Ethical Decisions: Pay-per-Tweet
Using Social Media to Monitor Ad Effectiveness
Global Advertising
Reaching Beyond Our Borders: What’s in Your Oreo?
Personal Selling: Providing Personal Attention
Steps in the Selling Process
The Business-to-Consumer Sales Process
Public Relations: Building Relationships
Publicity: The Talking Arm of PR
Sales Promotion: Giving Buyers Incentives
Word of Mouth and Other Promotional Tools
Adapting to Change: What Are Companies Yelping About?
Blogging
Podcasting
E-Mail Promotions
Mobile Marketing
Managing the Promotion Mix: Putting It All Together
Promotional Strategies
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: SXSW
Notes
Photo Credits
PART 6 Managing Financial Resources
Chapter 17 Understanding Accounting and Financial Information
Getting to Know: John Raftery, Founder of Patriot Contractors
The Role of Accounting Information
What Is Accounting?
Accounting Disciplines
Managerial Accounting
Financial Accounting
Auditing
Adapting to Change: Elementary, Mr. Auditor, Elementary
Tax Accounting
Government and Not-for-Profit Accounting
The Accounting Cycle
Using Technology in Accounting
Understanding Key Financial Statements
The Fundamental Accounting Equation
The Balance Sheet
Classifying Assets
Liabilities and Owners’ Equity Accounts
The Income Statement
Revenue
Cost of Goods Sold
Operating Expenses
Spotlight on Small Business: The Ins and Outs of Valuing Inventory
Net Profit or Loss
The Statement of Cash Flows
Making Ethical Decisions: Would You Cook the Books?
The Need for Cash Flow Analysis
Analyzing Financial Performance Using Ratios
Liquidity Ratios
Leverage (Debt) Ratios
Profitability (Performance) Ratios
Activity Ratios
Reaching Beyond Our Borders: Speaking a Universal Accounting Language
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: The Accounting Function at Goodwill Industries
Notes
Photo Credits
Chapter 18 Financial Management
Getting to Know: Sabrina Simmons, CFO of Gap
The Role of Finance and Financial Managers
The Value of Understanding Finance
What Is Financial Management?
Financial Planning
Forecasting Financial Needs
Working with the Budget Process
Establishing Financial Controls
The Need for Operating Funds
Managing Day-by-Day Needs of the Business
Controlling Credit Operations
Making Ethical Decisions: Good Finance or Bad Medicine?
Acquiring Needed Inventory
Making Capital Expenditures
Alternative Sources of Funds
Obtaining Short-Term Financing
Trade Credit
Family and Friends
Commercial Banks
Adapting to Change: Threading the Financial Needle
Different Forms of Short-Term Loans
Factoring Accounts Receivable
Commercial Paper
Credit Cards
Obtaining Long-Term Financing
Debt Financing
Reaching Beyond Our Borders: Are They Heroes or Hustlers?
Equity Financing
Comparing Debt and Equity Financing
Lessons Learned from the Recent Financial Crisis
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Starting Up: Tom and Eddie’s
Notes
Photo Credits
Chapter 19 Using Securities Markets for Financing and Investing Opportunities
Getting to Know: Mellody Hobson, President of Ariel Investments
The Function of Securities Markets
The Role of Investment Bankers
Stock Exchanges
Securities Regulations and the Securities and Exchange Commission
Spotlight on Small Business: Giving Small Business a Jump on Funding
Foreign Stock Exchanges
How Businesses Raise Capital by Selling Stock
Advantages and Disadvantages of Issuing Stock
Issuing Shares of Common Stock
Issuing Shares of Preferred Stock
How Businesses Raise Capital by Issuing Bonds
Learning the Language of Bonds
Advantages and Disadvantages of Issuing Bonds
Different Classes of Bonds
Special Bond Features
How Investors Buy Securities
Making Ethical Decisions: Money Going Up in Smoke
Investing through Online Brokers
Choosing the Right Investment Strategy
Reaching Beyond Our Borders: Global Stocks: Love Them or Leave Them
Reducing Risk by Diversifying Investments
Investing in Stocks
Stock Splits
Buying Stock on Margin
Understanding Stock Quotations
Investing in Bonds
Investing in High-Risk (Junk) Bonds
Understanding Bond Quotations
Investing in Mutual Funds and Exchange-Traded Funds
Understanding Mutual Fund Quotations
Understanding Stock Market Indicators
Riding the Market’s Roller Coaster
Investing Challenges in the 21st-Century Market
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: Where Did All My Money Go?
Notes
Photo Credits
Chapter 20 Money, Financial Institutions, and the Federal Reserve
Getting to Know: Janet Yellen, First Female Chair of the Federal Reserve
Why Money Is Important
What Is Money?
Adapting to Change: The Bitcoin Is in the Mail
What Is the Money Supply?
Managing Inflation and the Money Supply
The Global Exchange of Money
Control of the Money Supply
Basics about the Federal Reserve
The Reserve Requirement
Open-Market Operations
The Discount Rate
The Federal Reserve’s Check-Clearing Role
The History of Banking and the Need for the Fed
Banking and the Great Depression
The U.S. Banking System
Commercial Banks
Services Provided by Commercial Banks
Services to Borrowers
Making Ethical Decisions: Would You Tell the Teller?
Savings and Loan Associations (S&Ls)
Credit Unions
Other Financial Institutions (Nonbanks)
Spotlight on Small Business: Taking a Bite Out of the Sharks
The Banking Crisis and How the Government Protects Your Money
Protecting Your Funds
The Federal Deposit Insurance Corporation (FDIC)
The Savings Association Insurance Fund (SAIF)
The National Credit Union Administration (NCUA)
Using Technology to Make Banking More Efficient
Online Banking
International Banking and Banking Services
Leaders in International Banking
The World Bank and the International Monetary Fund (IMF)
Reaching Beyond Our Borders: New Day, New Issues across the Globe
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Video Case: The Financial Crisis
Notes
Photo Credits
Bonus Chapters
Bonus Chapter A Working within the Legal Environment
Getting to Know: Eve Wright Taylor, Vice President & Associate General Counsel for the Miami Heat
The Case for Laws
Statutory and Common Law
Administrative Agencies
Tort Law
Product Liability
Legally Protecting Ideas: Patents, Copyrights, and Trademarks
Sales Law: The Uniform Commercial Code
Warranties
Negotiable Instruments
Contract Law
Breach of Contract
Promoting Fair and Competitive Business Practices
The History of Antitrust Legislation
Laws to Protect Consumers
Tax Laws
Bankruptcy Laws
Deregulation versus Regulation
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Notes
Photo Credits
Bonus Chapter B Using Technology to Manage Information
Getting to Know: Jack Dorsey, Co-Founder of Twitter
The Role of Information Technology
Evolution from Data Processing to Business Intelligence
How Information Technology Changes Business
Types of Information
Managing Information
Organizing E-Mail and Electronic Files
Big Data and Data Analytics
The Heart of Knowledge Management: The Internet
Broadband Technology
Social Media and Web 2.0
Web 3.0
Who’s the “Boss” of the Internet?
Virtual Networking and Cloud Computing
Effects of Information Technology on Management
Human Resource Issues
Security Issues
Privacy Issues
Stability Issues
Technology and You
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Notes
Photo Credits
Bonus Chapter C Managing Risk
Getting to Know: Dan Amos, CEO of Aflac
Understanding Business Risks
How Rapid Change Affects Risk Management
Managing Risk
Reducing Risk
Avoiding Risk
Self-Insurance
Buying Insurance to Cover Risk
What Risks Are Uninsurable?
What Risks Are Insurable?
Understanding Insurance Policies
Rule of Indemnity
Types of Insurance Companies
Insurance Coverage for Various Kinds of Risk
Health Insurance
Health Savings Accounts
Disability Insurance
Workers’ Compensation
Liability Insurance
Life Insurance for Businesses
Insurance Coverage for Home-Based Businesses
The Risk of Damaging the Environment
Protection from Cyber Attacks
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Notes
Photo Credits
Bonus Chapter D Managing Personal Finances
Getting to Know: Alexa von Tobel, Founder and CEO of LearnVest
The Need for Personal Financial Planning
Financial Planning Begins with Making Money
Six Steps to Controlling Your Assets
Building Your Financial Base
Real Estate: Historically, a Relatively Secure Investment
Tax Deductions and Home Ownership
Where to Put Your Savings
Learning to Manage Credit
Protecting Your Financial Base: Buying Insurance
Health Insurance
Disability Insurance
Homeowner’s or Renter’s Insurance
Other Insurance
Planning Your Retirement
Social Security
Individual Retirement Accounts (IRAs)
Simple IRAs
MyIRAs
401(k) Plans
Keogh Plans
Financial Planners
Estate Planning
Summary
Key Terms
Critical Thinking
Developing Workplace Skills
Taking It to the Net
Notes
Photo Credits
Epilogue Getting the Job You Want
Job Search Strategy
Searching for Jobs Online
Job Search Resources
Writing Your Résumé
Putting Your Résumé Online
Writing a Cover Letter
Preparing for Job Interviews
Be Prepared to Change Careers
Photo Credits
Glossary
Name Index
Organization Index
Subject Index
Chapter A14 Managing theMarketing Mix:Product, Price, Place,and Promotion